29/03/2018 07:51 AST
Despite global economic headwinds and the blockade imposed on Qatar in June last year, ZAD Holding Company has managed to maintain good performance in 2017 not only catering to the needs of the country but maintaining stable consumer price levels.
This was announced by vice chairman Sheikh Talal bin Mohamed bin Jabor al-Thani during ZAD Holding's annual general meeting held yesterday at the Sharq Village & Spa in Doha.
Sheikh Talal said ZAD Holding has been continuously reinvesting a major portion of the company's profits on modernising and upgrading its various production facilities to achieve higher yields, greater efficiency, increased flexibility, and reduced labour costs.
"As a result of this strategy, the company has been in a position to not only fulfil the supply gap caused by the blockade, but also maintain stable consumer price levels," he told shareholders, who approved the board's recommendation to distribute 65% cash dividends and 10% bonus shares.
Sheikh Talal said ZAD Holding will continue to focus on its core businesses, such as packaged food consumer goods "due to its defensive nature and strategic importance to the country."
"All planned expansions to our various factories have already been completed. With the existing production capacities and capabilities, we can easily satisfy current and near future market requirements of Qatar," he added.
This was reiterated by chief executive officer Tarique Mohamed, who said the ZAD Company's flour mills now has a total milling capacity of 890MT per day after it expanded milling capacity by 70MT per day in 2017.
"This is enough for the entire market of Qatar, so the country doesn't have to import flour because we can satisfy the current market and the future market requirements, as well.we are now sufficient for the market's requirements," Mohamed told Gulf Times on the sidelines of the meeting.
Mohamed also said construction of the company's 7,000 sqm cold storage facilities in the Industrial Area is expected to be completed by May 2018, and would be used to store mostly food products.
On the blockade, Mohamed said ZAD Holding was able to source ingredients cost effectively from alternative suppliers like Turkey, China, India, and European countries like Germany.
"We had to re-evaluate many of our systems and processes, especially those linked to supply-chains and logistics, and devise new strategies and approaches to fuel our growth engines. In keeping pace with the changing times, the products and services offered by ZAD and its subsidiaries have also had to evolve to become more relevant to the ever-altering tastes and preferences of their various customers.
"Since the very beginning of the blockade, ZAD has been taking continuous measures to ensure the uninterrupted availability of all finished goods produced by its subsidiaries, without compromising on the quality and with no increase in consumers' prices, by sourcing the ingredients cost effectively from alternative suppliers through alternate channels," he said.
Gulf Times
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